Philip Hammond has delivered the 2017 Spring Budget, his first as chancellor. In future the Budget will take place in the Autumn, a change he announced in the 2016 Autumn Statement.
The TFMC Finance & Tax App has a dedicated Budget News section with plenty of detail and reaction. Nevertheless, here are some of the key highlights of the 2017 Spring Budget:
- Class 4 National Insurance contributions which affect the self-employed to increase from the current rate of 9% to 10% in 2018 and 11% in 2019. Expected to raise around £145m per year by 2021/22 this is expected to affect around 2.5 million people.
- Tax free dividend allowance to be cut from £5,000 to £2,000 from April 2018
- Personal Allowance to rise to £11,500 in April and with the aim to reach £12,500 by 2020
- With the pending increases in business rates those who are set to lose the existing small business rates relief will have increases capped at £50 per month. Pubs with a rateable value of less than £100,000 will get a £1,000 discount
- Businesses with turnover below the VAT registration threshold to have the introduction of quarterly digital reporting put back 12 months
- £2bn in additional grant funding for social care over the next 3 years
- The new NS&I bond will pay 2.2% on deposits up to £3,000 from April
- From September 2017 working parents with 3 and 4 year old children will have their tax-free childcare entitlement doubled to 30 hours per week
- No changes to the previously planned increases in alcohol and tobacco duties which will increase in line with RPI
Further details can also be found on the HMRC website.